Wall Street plunges on crisis jitters
Wall Street has plunged as investors worried about the global financial crisis and a US recession, a day after Democrat Barack Obama was elected the next US president in a landslide victory.business Updated: Nov 06, 2008 11:05 IST
Wall Street has plunged as investors worried about the global financial crisis and a US recession, a day after Democrat Barack Obama was elected the next US president in a landslide victory.
The Dow Jones Industrial Average plummeted 486.01 points (5.05 per cent) to 9,139.27 and the tech-heavy Nasdaq fell 98.48 points (5.53 per cent) to 1,681.64, snapping a six-session winning streak.
The Standard and Poor's 500 index slid 52.98 points (5.27 per cent) to finish at 952.77.
The market action wiped out gains from the strongest Election Day rally in history on Tuesday as investors hoped that a new president would bring relief from the global financial crisis. The Dow had surged 3.28 per cent and the Nasdaq added 3.12 per cent.
The president-elect faces the biggest global financial crisis since the Great Depression and a host of domestic economic ills, including rising unemployment, falling home values and deeply shaken confidence.
He takes office on January 20, and those problems will not wait, analysts said.
"Investor concern returns to the economy and signs of further deterioration in virtually all sectors of the economy," said Fred Dickson at DA Davidson and Co.
"The reality is that banks are still reluctantly lending even though hundreds of billions of funds have been pumped into the banking system," he added.